Abstract:
This study investigates factors affecting the use of market information by wheat farmers and
its impact on their income in Omo Beyam district, Jimma Zone, and Southwest Ethiopia.
Two-stage sampling procedures was chosen to select district and kebeles based on the high
potential of wheat production and the participation of producers in wheat marketing. The
study used data on 245 respondents collected through a structured questionnaire from Omo
Beyam district, Jimma Zone. Descriptive and Propensity score-matching inferential methods
were employed to analyze the data. Findings show that 59.19% of respondents use market
information, with family size as a significant determinant; larger households are more likely
to use market information. Proximity to markets also facilitates better access to timely
information, while education level significantly correlates with use rates, as literate farmers
outperform their illiterate counterparts. Gender disparities persist, with male farmers using
market information more frequently than females. Key factors influencing market information
use include extension participation, access to credit, frequency of market visits, and exposure
to mass media. A binary logit model analysis reveals five significant variables positively
affecting household income: education level, land allocated for wheat production, access to
credit, market visit frequency, and mass media access. To assess the impact of market
information use on household income, a propensity score matching (PSM) model is
employed. Among the matching algorithms tested, caliper matching with a bandwidth of 0.01
is found to be the most effective. Results indicate that households using market information
experience an average income increase of 17785.55 ETB compared to non-users. These
findings underscore the importance of enhancing access to market information for improving
household incomes among smallholder farmers. The study recommended that searching and
using up-to-date market information is advisable to gain high profit and Policymakers should
implement comprehensive strategies that promote access to market information while
addressing educational and resource barriers to maximize economic benefits for farmers.
